- Virgin Money has agreed to purchase abrdn’s 50% stake in Virgin Money Investment
Virgin Money has agreed to purchase out Abrdn’s 50 per cent stake of their three way partnership, Virgin Money Investments, in a £20million deal.
The payment means the FTSE 250-listed asset supervisor has misplaced over half the worth of its funding in Virgin Money Investments made simply 4 years in the past.
Aberdeen Standard Investments, because it was beforehand recognized, bought a 50 per cent stake within the agency for £40million plus capital changes of £10million, for a complete sum of £50million, in 2019.
Deal: Virgin Money has agreed to purchase out abrdn’s 50% stake of their three way partnership, Virgin Money Investments
On Wednesday, Virgin Money stated the recent deal got here after a brand new digital platform was rolled out final 12 months, adopted by a recent pension providing.
By December, Virgin Money Investments had round £3.7billion in property below administration and over 150,000 clients, in response to Virgin Money.
Virgin Money needs to double Virgin Money Investments’ property below administration throughout the subsequent 5 years.
Staff at Virgin Money Investments will transfer into Virgin Money, with ‘no anticipated job losses’.
Virgin Money director, Allegra Patrizi, stated: ‘Taking full management of Virgin Money Investments will imply we will deliver the investments and pensions enterprise along with our deposits, mortgages, bank cards and every day banking, enabling us to assist extra clients really feel assured to speculate.’
While the financial institution will take full possession, Abrdn will proceed to supply the funding recommendation for Virgin Money Investments.
Under the phrases of the deal, which is topic to customary approvals, Virgin Money will purchase the 50 per cent of Virgin Money Unit Trust Managers Limited, presently owned by abrdn, for a money fee of £20million, funded completely from Virgin Money’s present capital assets.
Virgin Money added: ‘The buy will allow Virgin Money and abrdn to deal with their respective strengths; Virgin Money’s broad enchantment and distribution, utilizing sensible digital propositions and compelling rewards for purchasers, and abrdn’s power in asset administration.’
Virgin Money shares had been up 0.86 per cent or 1.35p to 157.95p on Wednesday, having fallen over 14 per cent within the final 12 months.
Abrdn shares rose 1.98 per cent or 3.15p to 162.05p on Wednesday, having fallen over 24 per cent within the final 12 months.